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Reckitt Benckiser: good start to 2010
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MARKET REVIEWS Speciality makers talk recovery at NYSCC suppliers’ day Manufacturers at the New York Society of Cosmetic Chemists (NYSCC) Suppliers’ Day in Edison, NJ, USA, were generally optimistic about the recovery in the speciality chemicals and personal care sectors. In the personal care segment, the higher-end prestige sector is making a fast rebound. The forecast is also significantly unlike the projections from 12 months ago. It was projected that it may take 2-3 years for volumes to return to 2008 levels, but the recovery in demand has been every bit as sudden as the contraction was. During the downturn, the trend towards more natural and sustainable products continued. Enhancing the aesthetics and sensory feel of cosmetics and personal care products remain the focus in new product formulations and innovations. Chemical Week, 17 May 2010, (Website: http://www.chemweek.com)
COMPANY RESULTS Reckitt Benckiser: good start to 2010 For its 1Q 2010 (period ends 31 Mar 2010), Reckitt Benckiser Group plc reported net income of £348 M, up 15% on the previous year at constant exchange rates, while operating profit was up 14% to £461 M. Net sales were up 5% at £2.003 bn. Its Europe segment (45% of net revenue) reported net revenue of £906 M, down 1% (£918 M for its 1Q 2009) and operating profit of £206 M (£206 M). Good growth in Home Care was offset by weakness in Fabric Care, with Dishwashing, Surface Care and Health & Personal Care showing a relatively flat performance. The result in Fabric Care was impacted by weakness in Laundry Detergent, Fabric Conditioner and Water Softeners. North America & Australia 6
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(26% of net revenue) saw revenue increase 3% to £528 M; growth was led by Fabric Care, Surface Care, Dishwashing and Home Care. Operating profit increased 13% to £105 M. Net revenue for Developing Markets (22% of total) grew 19% to £438 M, with strong growth across all regions. In Fabric Care, Vanish delivered a strong result, while Dettol, Harpic and Veja in Brazil, were the key drivers in Surface Care. Health & Personal Care increased largely as a result of the continued excellent performance of the Dettol personal care range. Operating profit increased by 49% to £64M. The Household and Health & Personal Care segment of Reckitt Benckiser reported 1Q 2010 net revenue of £1806 M (£1739 M for its 1Q 2009) and operating profit of £360 M (£332 M). In Fabric Care net revenue was unchanged versus 1Q 2009, at £407 M. Vanish showed good growth in North America & Australia and Developing Markets, and was helped by the launch of Vanish Oxi Action Extra Hygiene. Growth in Woolite was supported by the launch of Woolite Complete. The performance of Vanish and Woolite was offset by weakness in Laundry Detergents, Fabric Conditioners and Water Softeners. Net revenue for the Surface Care category grew 7% to £343 M. Growth came from the Dettol/Lysol ranges, Harpic, and Veja in Brazil. In Dishwashing net revenue increased 1% to £237 M, helped by the continued growth of Finish Quantum and All-in-1 tablets, and further supported by the launch of the Finish Quantumatic automatic detergent dispenser. For Home Care net revenue rose 11% to £294 M while for Health & Personal Care net revenue increased 4% to £524 M. The increase in Personal Care was largely the result of a very strong performance for the Dettol/Lysol ranges. For Dettol, the personal care range continued to drive excellent growth in Developing Markets and Europe. For Lysol, the launch of the No Touch Hand Soap System in North America has delivered very encouraging early results. Reckitt Benckiser Results 1Q 2010, 27 Apr 2010, (Reckitt Benckiser Group plc, 103-105 Bath Road, Slough, Berkshire SL1 3UH, UK, tel: +44 1753 217800, fax: +44 1753 217899, website: http://www.reckittbenckiser.com)
Henkel harvests fruits of savings programme Following a jump in profits in 1Q 2010, Henkel has increased its forecast for the full year. The savings programme in particular has contributed. Sales were up from €3.258 bn to €3.512 bn and EBIT was up from €218 M to €422 M. Profits after minority interests were up from €117 M to €259 M. Henkel profited in particular from better results in the detergents business and in its cycle-sensitive industrial and adhesives division. The Adhesives Technologies division had sales up 14.5% in 1Q 2010 at €1.7 bn and EBIT more than tripled to €185 M. Analysts had expected Henkel to post 1Q sales of €3.431 bn and EBIT of €370 M. Henkel believes it can increase adjusted EBIT and profits per preference share by more than 15% in 2010, rather than by 10%. The adjusted margin is to reach 14% by 2012; it was 12% in 1Q 2010. Handelsblatt Wirtschafts- und Finanzzeitung, 5 May 2010, (Website: http://www.handelsblatt.com) (in German)
Procter & Gamble reports slight fall in first quarter results Procter & Gamble has reported a net profit of $2.59 bn (€1.9 bn) for the first quarter of 2010 (the company’s fiscal third quarter), down from $2.61 bn in the same period of 2009. However the figure was higher than predicted by analysts. The group’s core earnings per share (excluding certain taxes, legal costs and restructuring charges) were up by 10% to 89 cents. Turnover was up by 7.4% to $19.18 bn (analyst prediction $19.53 bn). Excluding exchange rate fluctuation and acquisitions, turnover rose by 4%. Sales volume improved by 7% during the quarter. The household product group expects a fiscal 2010 earnings per share of between $4.06 and $4.12. It also predicts turnover to be up by 3-5% in its fiscal 4Q (ending Jun 2010) and up 6-7% for the full year. La Tribune, 29 Apr 2010, (Website: http://www.latribune.fr) (in French)
Rhodia 1Q 2010 results: Novecare For its 1Q 2010, the Novecare segment of Rhodia SA has reported JULY 2010
MARKET REVIEWS Speciality makers talk recovery at NYSCC suppliers’ day Manufacturers at the New York Society of Cosmetic Chemists (NYSCC) Suppliers’ Day in Edison, NJ, USA, were generally optimistic about the recovery in the speciality chemicals and personal care sectors. In the personal care segment, the higher-end prestige sector is making a fast rebound. The forecast is also significantly unlike the projections from 12 months ago. It was projected that it may take 2-3 years for volumes to return to 2008 levels, but the recovery in demand has been every bit as sudden as the contraction was. During the downturn, the trend towards more natural and sustainable products continued. Enhancing the aesthetics and sensory feel of cosmetics and personal care products remain the focus in new product formulations and innovations. Chemical Week, 17 May 2010, (Website: http://www.chemweek.com)
COMPANY RESULTS Reckitt Benckiser: good start to 2010 For its 1Q 2010 (period ends 31 Mar 2010), Reckitt Benckiser Group plc reported net income of £348 M, up 15% on the previous year at constant exchange rates, while operating profit was up 14% to £461 M. Net sales were up 5% at £2.003 bn. Its Europe segment (45% of net revenue) reported net revenue of £906 M, down 1% (£918 M for its 1Q 2009) and operating profit of £206 M (£206 M). Good growth in Home Care was offset by weakness in Fabric Care, with Dishwashing, Surface Care and Health & Personal Care showing a relatively flat performance. The result in Fabric Care was impacted by weakness in Laundry Detergent, Fabric Conditioner and Water Softeners. North America & Australia 6
ON
S U R FAC TA N T S
(26% of net revenue) saw revenue increase 3% to £528 M; growth was led by Fabric Care, Surface Care, Dishwashing and Home Care. Operating profit increased 13% to £105 M. Net revenue for Developing Markets (22% of total) grew 19% to £438 M, with strong growth across all regions. In Fabric Care, Vanish delivered a strong result, while Dettol, Harpic and Veja in Brazil, were the key drivers in Surface Care. Health & Personal Care increased largely as a result of the continued excellent performance of the Dettol personal care range. Operating profit increased by 49% to £64M. The Household and Health & Personal Care segment of Reckitt Benckiser reported 1Q 2010 net revenue of £1806 M (£1739 M for its 1Q 2009) and operating profit of £360 M (£332 M). In Fabric Care net revenue was unchanged versus 1Q 2009, at £407 M. Vanish showed good growth in North America & Australia and Developing Markets, and was helped by the launch of Vanish Oxi Action Extra Hygiene. Growth in Woolite was supported by the launch of Woolite Complete. The performance of Vanish and Woolite was offset by weakness in Laundry Detergents, Fabric Conditioners and Water Softeners. Net revenue for the Surface Care category grew 7% to £343 M. Growth came from the Dettol/Lysol ranges, Harpic, and Veja in Brazil. In Dishwashing net revenue increased 1% to £237 M, helped by the continued growth of Finish Quantum and All-in-1 tablets, and further supported by the launch of the Finish Quantumatic automatic detergent dispenser. For Home Care net revenue rose 11% to £294 M while for Health & Personal Care net revenue increased 4% to £524 M. The increase in Personal Care was largely the result of a very strong performance for the Dettol/Lysol ranges. For Dettol, the personal care range continued to drive excellent growth in Developing Markets and Europe. For Lysol, the launch of the No Touch Hand Soap System in North America has delivered very encouraging early results. Reckitt Benckiser Results 1Q 2010, 27 Apr 2010, (Reckitt Benckiser Group plc, 103-105 Bath Road, Slough, Berkshire SL1 3UH, UK, tel: +44 1753 217800, fax: +44 1753 217899, website: http://www.reckittbenckiser.com)
Henkel harvests fruits of savings programme Following a jump in profits in 1Q 2010, Henkel has increased its forecast for the full year. The savings programme in particular has contributed. Sales were up from €3.258 bn to €3.512 bn and EBIT was up from €218 M to €422 M. Profits after minority interests were up from €117 M to €259 M. Henkel profited in particular from better results in the detergents business and in its cycle-sensitive industrial and adhesives division. The Adhesives Technologies division had sales up 14.5% in 1Q 2010 at €1.7 bn and EBIT more than tripled to €185 M. Analysts had expected Henkel to post 1Q sales of €3.431 bn and EBIT of €370 M. Henkel believes it can increase adjusted EBIT and profits per preference share by more than 15% in 2010, rather than by 10%. The adjusted margin is to reach 14% by 2012; it was 12% in 1Q 2010. Handelsblatt Wirtschafts- und Finanzzeitung, 5 May 2010, (Website: http://www.handelsblatt.com) (in German)
Procter & Gamble reports slight fall in first quarter results Procter & Gamble has reported a net profit of $2.59 bn (€1.9 bn) for the first quarter of 2010 (the company’s fiscal third quarter), down from $2.61 bn in the same period of 2009. However the figure was higher than predicted by analysts. The group’s core earnings per share (excluding certain taxes, legal costs and restructuring charges) were up by 10% to 89 cents. Turnover was up by 7.4% to $19.18 bn (analyst prediction $19.53 bn). Excluding exchange rate fluctuation and acquisitions, turnover rose by 4%. Sales volume improved by 7% during the quarter. The household product group expects a fiscal 2010 earnings per share of between $4.06 and $4.12. It also predicts turnover to be up by 3-5% in its fiscal 4Q (ending Jun 2010) and up 6-7% for the full year. La Tribune, 29 Apr 2010, (Website: http://www.latribune.fr) (in French)
Rhodia 1Q 2010 results: Novecare For its 1Q 2010, the Novecare segment of Rhodia SA has reported JULY 2010